Apple’s Plan to Comply With EU’s DMA Regulation a ‘Farce’, Spotify Says

Apple could face strong action if its proposed App Store changes do not comply with the Digital Markets Act, according to the EU’s industry chief.

by TAUHID SHAH: January 27: Saturday: 14:44 PM| 2024 Updated.

Spotify recently criticized Apple’s decision to follow the European Union’s Digital Markets Act (DMA), calling it “absurd.” This act allows app developers to introduce their stores on iPhones and avoid using Apple’s in-app payment system, which is known for its high fees of up to 30% as per EU rules.

However, developers still have to pay a yearly “core technology fee” of EUR 50 (about Rs. 4,500) per user account under Apple’s new EU rules.

Spotify, a major player in the music streaming industry, expressed dissatisfaction with Apple’s stance on the DMA, saying that Apple has proposed an unfavorable alternative to the current system.

If Spotify chooses to stay within the App Store and use its in-app payment system under the new terms, it would face a 17% commission.

Apple responded to these concerns, emphasizing that every developer has the choice to stick with the existing terms. They claim that under the new rules, over 99% of developers would pay an equal or reduced amount to Apple.

There’s a serious warning for Apple if it fails to align the App Store with the upcoming regulations, as revealed by an EU industry expert in a statement to Reuters at the end of the week.